Exam 8: Forms of Business Ownership

In 1984, Suzanne Pogell wanted to learn to sail, but she could find no one to teach her. She finally did convince someone to teach her to sail and, after mastering sailing, she started an all-woman sailing school called "Womanship" as a sole proprietorship. When she dies, which of the following will occur?

Which of the following is a good way to find out about a potential franchisor?

Which form of business ownership has the most difficulty in raising capital?

A business partnership has a lot of similarities to a marriage.

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

The franchise agreement is best described by which of the following?

Rama Singh and Allie Jordan are opening a business where they will create and sell packaged assortments of flavoured vinegars with recipe booklets. Since they are planning to operate as a partnership, which of the following represents the best course of action for them?

Which of the following is a disadvantage of sole proprietor ownership?

Which of the following statements best describes the taxation of partnerships?

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

An unfriendly takeover is a takeover that goes against the wishes of the target company's management and board of directors.

A local lumber company's purchase of a window and door manufacturer is an example of which of the following types of merger?

David Dworkin is the founder of Swoozie's stores. The stores carry diverse lines of wrapping paper, stationery, invitations, and gifts for affluent women. Dworkin supplied the product concept to other individuals who wanted to own and operate their own business without starting from scratch. Which of the following types of a business organization is Swoozie's?

Why do most large companies have outside directors on their boards?

A corporation has which of the following characteristics?

Which of the following are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership?

Tony inherited some money and he wants to invest it in the stock market. What type of corporation can he buy shares of on the stock exchange?

The board of directors of a corporation is elected by the shareholders

A friendly takeover is a takeover supported by the management and board of directors of the targeted company.

What is the term for when a takeover is supported by the management and board of directors of the targeted company?